FAAC: Finance Commissioners Insist NNPC Must Give Proper Accounts Of Revenues

The Chairman FCF, Mahmoud Yunusa while addressing Journalists

***It Comes With Pains, Delay Of Salary Payments As FAAC Meeting Is Put Off, Yunusa

By CLEMENT NWOJI, Abuja

The Finance Commissioners in the Federation, under the aegis of Finance Commissioners Forum (FCF), on Saturday insisted that the Nigeria National Petroleum Corporation (NNPC) must give adequate account of revenues accruing into the Federation account from crude oil sales even if this demand will forestall the reconvening of the deadlocked meeting of the Federation Accounts Allocation Committee (FAAC).

On Wednesday, the FAAC meeting being attended monthly by the finance Commissioners from the 36 states of the Federation, including representative of the Federal Capital Territory (FCT), Abuja and relevant revenue generating agencies to allocate funds which accrued into the federation account to the three tiers of government ended abruptly without the allocation.

The cause was that the Nigeria National Petroleum Corporation (NNPC) had remitted money about N147 billion which the commissioners contended that it was short of the expectations as there are unexplained deductions that were meant to be made from the total sum.

Thus, the three tiers of Government which depended on monies from the allocation for payment of salaries to their respective workers have not done so till date.

Although, the NNPC on its part argued that it had even exceeded the mandatory monthly remittance of N112 billion to FAAC by N35 billion, having taken a cue from the Commissioners postures by taking from the sum meant for settling cash call obligations.

But the Chairman of FCF, Mahmoud Yunusa while addressing Journalists insisted that what the commissioners demanded was proper accountability from the NNPC on how the sum of about N60 billion as payment for Royalty is to be deducted from the said fund already remitted.

He argued that the amount due to Royalty ought to have been deducted from first line charge by the Department of Petroleum Resources (DPR) before remittance by the NNPC to FAAC.

Further, he cited that NNPC had in its report to FAAC claimed loss of N3.45 billion due to pipeline leakages which also the DPR claimed it was not aware of any pipeline leakage.

Yunusa said: “As Stakeholders, you don’t expect that the NNPC will submit its report to us and we must adopt it as it is. We have to to ask questions if there grey areas. We have to be convinced but if there are areas that are not clear, we have to step down the report until we are sure that the figures are genuine and in order.”

He made reference to media reports which had suggested that the Commissioners were demanding for more money from the NNPC despite the remittance of N147 billion, saying but that is not the case. If you have a company and you know that it has capacity to give you more money, what’s is wrong in looking for more?

He said that what the NNPC remitted was N127 billion which is inclusive of Royalty and Petroleum Products Tax based on analysis of FAAC. He explained that the Royalty is due to DPR while PPT is due to Federal Inland Revenue Service.

He contended that according to the statutory regulations, there is no limit placed on the amount the NNPC ought to be remitting even though they are expected not fall below certain limit.

Therefore, the Chairman of FCF maintained that since oil price is stable at about $80 per barrel of crude while the nation is producing about 1.8 to 1.9 million barrels per day, it is expected that the revenue generated NNPC should be high and greater positive impact on the revenue side of the federation.

He argued that though the figures said to have been remitted may appear nice and big but the commissioners have to go beyond the mere figures to determine if it is correct or not in the interest of the nation.

He said this issue of proper accountability and reconciliation of NNPC accounts had gone to the highest quarter of the National Economic Council (NEC) presided by the Vice President, Yemi Osinbajo.

Mr. Yunusa noted that though the continuing step down of FAAC meeting comes with pains due to inability to pay salaries by states, but it is better to resolve the issue proper accountability by the NNPC once and for all.